Promotion efforts bolster ethanol exportsPromotion efforts bolster ethanol exports
August 28, 2015
ETHANOL exports this marketing year are expected to be the second largest on record as ethanol export promotion efforts ramp up by the U.S. Grains Council (USGC) and its partners Growth Energy, the Renewable Fuels Assn. and the U.S. Department of Agriculture's Foreign Agricultural Service.
"Efforts to promote increased exports of U.S. ethanol are showing progress, with global ethanol exports during the first 10 months of the current marketing year posting an 11% gain over last year's numbers," USGC chief economist Mike Dwyer said. "The council now expects full-year 2014-15 ethanol exports to reach 850 million gal. and to be valued at $1.9 billion, up from 768 million gal. just last year."
While U.S. exports of ethanol to Canada -- the top international customer -- are down 26% on a volume basis this year, USGC reported that all other major markets have shown increases due to strong demand and competitively priced U.S. ethanol supplies (Figure).
The second- and third-largest importers, Brazil and the Philippines, have grown 71% and 44%, respectively, to import 135 million gal. and 71.2 million gal. of U.S. ethanol. India and the United Arab Emirates round out the top five export markets for U.S. ethanol.
Other markets with significant growth during the first 10 months of 2014-15 include South Korea, Mexico, the European Union and Tunisia, USGC said.
Korea, which imports ethanol primarily for industrial purposes, has increased imports of U.S. ethanol by 94% to 42.3 million gal., and Mexico's imports have grown by 17% to 26.1 million gal. Tunisia's ethanol imports have increased 224% over 2014 tallies to a total of 30.7 million gal.
Despite stiff antidumping duties imposed on U.S. ethanol entering the EU, USGC said U.S. exports to the region are up 27% in the first 10 months compared to 2013-14 volumes, totaling 41.5 million gal.
"While this success is a good starting point, there is still much work to be done to keep ethanol exports growing," USGC noted. "The council and its partners have plans for ongoing work to promote U.S. ethanol as a clean-burning source of fuel to buyers and end users around the globe, including assessments in potential new markets, buyer team visits to the U.S. and a series of workshops focusing on the environmental and economic benefits of ethanol use."
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